Summary of legislative measures contained within Colorado House Bill 24‑1043 and House Bill 24‑1042, signed into law during the 2024 legislative session

What does this provision do?

HB24-1043 requests State funds to cover the unfunded liabilities for Members of the Statewide Death & Disability Plan hired prior to 1997 (Pre-97s). The original version of this bill requested $27.39 million in funds to be paid in three annual payments of $9.13 million. An amended version seeks payments of $2.05 million paid over 35 years starting in 2025.

Why is this action necessary?

The Statewide Death & Disability Plan provides 24-hour, on- or off-duty coverage to Members in the event they are injured or pass away. Plan membership includes over 14,000 active and retired participants from over 250 fire and police departments. As of January 1, 2023, the Plan is 81.7% funded.

From inception until 1997, the state was responsible for funding all Plan benefits. Then on January 1, 1997, the Plan’s funding mechanism changed to require Members and their Employers to fund the Plan through monthly payroll contributions. In an effort to fulfill its obligation to fund benefits for Members hired before 1997, the state made a one-time payment based upon actuarial projections at the time.

But in the years that followed, the actual cost of benefits has become significantly greater than the state’s original projection. This is largely due to two factors:

• Plan utilization: More Pre-97 Members have drawn D&D benefits than was expected, meaning more benefits are paid from the Plan than originally anticipated
• Longevity: These Members are living longer than the state projected, meaning that benefits must be paid over a longer period of time

In 2022, FPPA pursued legislation to cover the funding shortfall for Pre-97 Members. Senate Bill 22‑036 requested $33.2 million but was later amended to provide just $13.3 million. This cash infusion has helped to close the funding gap for Pre-97 Members, and this new legislation seeks to shore up the remaining outstanding funds. Based upon the experience of the last few decades and current actuarial projections, the funding shortfall for Pre-97 Members is currently $27.39 million, as of January 1, 2025.

The Bottom Line: The Statewide Death & Disability Plan provides an invaluable safety net to Colorado’s Firefighters, police officers, and their families. This bill asks the legislature to fulfill the state’s commitment to Colorado’s first responders, ensuring that they can count on their death and disability benefits into the future.

What Does This Provision Do?

HB24-1042 seeks to fix incorrect references and inconsistent language in Colorado Revised Statutes Title 31: Articles 30, 30.5, 31 & 31.5, resulting from House Bill 22-1034 which created FPPA’s Statewide Retirement Plan. This is a common process with a piece of legislation the size of the Statewide Retirement Plan bill.

Why is this action necessary?

This bill provides clarity to FPPA’s statutes and helps to administer the Statewide Retirement Plan more efficiently.

The Bottom Line: This bill provides clarity for FPPA staff and stakeholders by codifying current practices and removing inaccurate language. There is no fiscal impact to the state for this bill.